When Eris Property Group investigated expanding our business into the student accommodation market, given the significant gaps there is, we have realised that the development pipeline is substantial, and to serve it, we needed to raise more capital. The South Africa Student Accommodation Impact Investments (SASAII) was created to add more beds to boost supply.
The investment company is targeting R2 billion in raised equity capital and has secured several commitments to date. The minimum investment amount is R50 million, and the investment company is hoping to attract the attention of fund managers and pension funds, or those investors with long-term investment horizons.
An upside for investors is that the investment company is structured so that fees are only applicable to drawn capital, rather than all capital committed, which is how traditional private equity funds work. The company is up to date with the standards and requirements of the Department of Higher Education and Training and all our developments will comply with these, ensuring investors are guaranteed peace of mind in terms of quality assurance.
SASAII is targeting a 14% internal rate of return after tax (CPI plus 8%), so we believe our Investment proposition is very attractive over the long term and will list it on a stock exchange at the appropriate time.
The time is ripe for impact investment across several sectors, and Eris Property Group is hoping to attract investors to the South Africa Student Accommodation Impact Investments SASAII to help deliver quality student housing in South Africa to fulfil the need for this form of social infrastructure.
The South Africa Student Accommodation Impact Investments (SASAII) is a way for investors to realise a financial return while contributing to social solutions that will benefit South Africa's youth as they seek to attain an education.
